Dear The GridWise,

We are in uncertain times, that is for certain. I have spent many hours over the last several weeks talking to GridWise members about the business environment and what it means for investment, whether you are a utility or a manufacturer or a technology solution provider. Our members know better than I do that uncertainty about future economic conditions generally leads to a decrease in investment. Companies are taking a wait-and-see approach, adopting cost containment measures instead of making new multi-year investment commitments.

One of our GridWise utilities shared a spreadsheet with the price increases for basic grid components since 2020. Every item on the list has increased in price, but here’s the most striking line in the spreadsheet: distribution automation switches are 236% more expensive now and deliver in 72 weeks (that’s a year and a half….). And that is before any new tariffs are factored in. As we contemplate the cost of building out the grid to meet rapidly growing demand, we cannot ignore the supply chain for grid components. As policy makers look to reduce the interconnection time for new generation and new load, addressing supply chain bottlenecks and cost increases will be essential.

Supply chain issues will be a major focus of GridWise work in the coming year.

Karen Wayland

CEO, GridWise Alliance